Claymore Launches Sudan-Free Socially Responsible ETF

Claymore Securities has announced the launch of a socially responsible exchange-traded fund (ETF) tied to the issue of Sudan divestment.
The Claymore/KLD Sudan Free Large-Cap Core ETF tracks the KLD Large Cap Sudan Free Social Index.
“The new KLD Sudan Free Large Cap Social Index is the result of institutional and retail investors’ desire for Sudan-free investment products,” said Thomas Kuh, Managing Director of KLD Research & Analytics, Inc., in a news release. Christian Magoon, Senior Managing Director, Claymore Securities, said the index contains a Sudan-free mandate in the index methodology.
Claymore/KLD Sudan Free Large-Cap Core ETF seeks investment results that correspond generally to the performance, before the fund’s fees and expenses, of the KLD Large Cap Sudan Free Social Index. According to the announcement, the index is comprised of a subset of stocks in the Russell 1000 Index with market capitalizations generally greater than $1 billion that meet KLD Research & Analytics’ screens for environmental, social, and governance factors and involvement in Sudan, including:
  • Owns or controls property or assets in Sudan
  • Has employees or facilities in Sudan
  • Provides goods or services to companies domiciled in Sudan
  • Obtains goods or services from Sudan
  • Has distribution agreements with companies domiciled in Sudan
  • Issues credits or loans to companies domiciled in Sudan
  • Purchases goods or commercial paper issued by the Government of Sudan.
The index will be rebalanced annually in June in conjunction with the reconstitution schedule of the Russell 1000 Index.